Situational Analysis and Promotional Plan of Melbourne City Rooftop Honey

Introduction:

This report has been designed for the client ‘Melbourne City RoofTop Honey’, which is a social enterprise with a vision of ‘bringing bees back to the city and the suburbs of Melbourne.’ It was founded by Vanessa Kwiatkowski and Mat Lumalasi. The organisation increases awareness about the crucial role of bees to maintain the ecosystem and food chain. It focuses on environment sustainability (Rooftop Honey, 2016). The organisation offers a variety of products like Beeswax, Honey, seeds, and T-shirts (with its brand logo). However, this report focusses on a single product line of Rooftop Honey i.e. ‘300 grams Honey products.’ The objective of the report is to conduct a detailed situational analysis for developing a promotional plan for Rooftop Honey. The promotional campaign will be conducted in Melbourne City Rooftop Honey city of Australia.

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Situational Analysis:

This section includes a marketing mix, an external analysis, and an internal analysis of Rooftop Honey.

Marketing Mix:

The marketing mix covers the 4 P’s for the selected product line.

Product Strategy:

The product falls into the category of ‘tangible consumer goods.’ The product line includes six products from the ‘Roof Top Honey Product Range’, which are Honey-Alphington, Honey-Hay Fever, Honey-Just Harvested, Honey-Melbourne CBD, Honey-North of Yarra, and Honey-South of Yarra. All of the products in the line have the same quantity i.e. ‘300 grams.’

The quality of the product is high, as the organisation states that the honey is 100% raw, unblended, and without any additives and heat treatment. Its features include an incredible flavour and rich aroma. Furthermore, it provides several health benefits. There are some unique features of some products in the line. For example, Honey-Hay Fever offers a natural cure for hay fever, and Honey-Just Harvested is freshly extracted from beehives. The unique selling proposition of the entire product line is its purity; the fact that it is free from additives and heating procedure has not destroyed or altered its chemical and physical composition.

The product is branded as natural, nourishing, and delicious. Another important aspect of the branding is that the entire concept is developed around environmental sustainability and preservation of the ecosystem. The ‘Golden Yellow’ logo of RoofTop Honey displayed on product packaging depicts warmth, optimism, and uplift (Max, 2002). The ingredients of the product/100 grams are mentioned on the packaging.

Pricing Strategy:

The ‘value-based approach’ to pricing has been adopted by Melbourne Roof Top Honey. The enterprise has enhanced the perceived value of its products by featuring that the product is raw and is not subject to heat treatment. The price of the product is 14.95 Dollars (RoofTop Honey, 2016), which is higher than raw honey provided by competitors like VicHoney and ArchiBalds. Furthermore, the organisation offers promotional pricing strategies like coupons and bundles, which might apply to the selected product line.

Placement Strategy:

The honey is available across a variety of locations in Melbourne. The organisation has adopted ‘selective distribution channels’ and the Honey can be purchased from retailers like ‘The Food Smith’ and “Bluff Town’. It can also be bought through speciality stores like Bindle, The Condiment Queen, and Gifted Australia. It can also be ordered online. Furthermore, RoofTop offers support services through social media. Hence, RoofTop Honey has opted for both direct and indirect distribution channels.

Promotional Strategy:

RoofTop Honey has created a strong promotional mix that includes advertising, online communications, sales promotions, and public relations. Advertising is mainly done through the internet. Social media is used for online communications and public relations. The enterprise has managed different pages on social media like Facebook, Twitter, and Instagram. Furthermore, it offers sales promotions like samples, coupons, 5% extra, and discounts. Through these strategies, it achieves the objectives of building brand awareness, creating value, stimulating demand, positioning its product, and reinforcing its brand image. The organisation uses ‘pull marketing strategy’ to attract consumers.

Internal Analysis:

It can be assumed from desk research that the enterprise does not have a large human resource base. There are two partners, with a network of supporters and friends, who actively participate in the project. The supporters include gardeners, sponsors, and staff from restaurants, and cafes (Rooftop Honey, 2016). Considering the limited human resources, it is safe to assume that the enterprise does not have a high budget and relies on sponsorships and donations. However, the network of supporters and sponsors will be able to help in successful implementation of the promotional strategy.

Organisational Capabilities:

The decisions are taken by the two partners who own the enterprise. The network of supporters (including both other organisations like restaurants and individuals) the founders to carry out the activities that are necessary to achieve the goals of the enterprise.

Organisational Image:

The organisation has created a brand image that is environmentally friendly and is based on the values of compassion, affection, and sustainability.

Strengths and Weaknesses of Product:

The positioning of the product based on purity is one of its greatest strengths, as the demand for pure and natural products is on the rise in Australia (Australian Trade and Investment Commission, 2016). The customer services are also a strength, and example of which is the reservation of honey-hay fever for allergic customers (Rooftop Honey, 2016). Another strength is its strong branding, as all the branding attributes (including brand value, brand image and visuals like logo and colours) are aligned with the core values of the enterprise.

A potential weakness is the small human resource base, which, if expanded, might be able to add higher value to the organisation. The limited Human Resources are reflected in this statement of Lumalasi “We are collecting the bees, we are dealing with the clients, doing all the extracting, the bottling, the distribution and the deliveries. We are constantly chasing our tails. We could look after 100 hives by ourselves, but that would be it. So we are looking at engaging some of the councils and utilising public green space. (Harris, 2015)”

External Analysis:

The external analysis covers the customers, competitors, and macro-environmental factors.

Customer Analysis:

The customers of Rooftop Honey include both individuals and organisations. A variety of restaurants and cafes purchase the honey products. Darren Purchese from ‘Burch & Purchese Sweet Studio’ was the first one to use Rooftop Honey in the dishes offered to customers (Harris, 2015). It is also used by other chefs like Adrian Richardson from La Luna Bistro[1] and Ben Shewry from Attica [2].

Table 1: Customer Segmentation for Rooftop Honey 300-gram range

Segmentation Base Characteristics of Customer Segment (Rooftop Honey)
Geographic Primarily, the customers belong to Melbourne and its suburbs
Psychographic and Behavioural Health consciousness, environment consciousness, traditionalism, seeking the natural/pure, and taste consciousness, seeking local and ethical

Benefits sought might vary from health to taste

Demographics Research reveals that organic and raw food is purchased by individuals with high education, affluent income, and woman with young children (Pearson, Henryks, & Jones, 2011)

The ideal customer would be based on psychographic and behavioural factors like health consciousness and seek the pure/natural. ‘Health conscious mothers’ are an interesting segment. Though ‘Health-oriented restaurants’ are also a viable segment, they are not targeted for 300 grams honey products and are more likely to purchase honey in bulk.

Competitor Analysis:

The top three competitors are VicHoney, Ambrosia, and Bens-Bees (see table-2)

VicHoney Ambrosia Bens-Bees
Determinant Attributes Raw and Organic Honey

Cold extracted

Unblended

Offers ‘Raw Honey’-cold extracted and ‘Organic Honey’- slightly warmed to make it runny

Unpasteurized

Offers services of ‘organic packing.’

Original, sweet, unheated, and unpasteurized
Brand Positioning Strategy ‘Only Raw Organic Honey’ positions the brand as pure and natural ‘Honey. It’s in our Roots’, depicts the brand as traditional, original, and natural Raw Honey offers nutrition, health benefits, and purity
Promotional Tactics Website

Blog

Website and social media Website and social media
Pricing Strategy $5/gram $2.6/gram $2/gram
Distribution Online shopping The product is placed at a variety of retail outlets Online shopping

PEST Analysis:

Several factors in external environment can influence the marketing strategies of Melbourne Roof Top Honey and the overall honeybee industry. Australia has a stable political and legal environment. The economy of Australia is flourishing (Trading Economics, 2016). The buying power of Australian consumers is increasing (Cole, 2015), and it will have a positive impact on sales of honey. It should be remembered that the organisation is a social enterprise that is working towards the sustainability of the environment. The socio-cultural environment supports the general cause of the project. Moreover, the honey is raw and local; the Australian Society encourages the consumption of organic and local products (Skene, 2016; Australian Food News, 2016). As far as the technological environment is concerned, the industry will be positively impacted by advancements in honey extraction technology. One such technological innovation in Australia is the invention of a beehive with a honey-tap (Thomsen, 2015). However, it should be noticed that Rooftop Honey sticks to the traditional method of hand extraction (Rittey, 2015).

SWOT ANALYSIS:

STRENGTHS:

Strong Branding positioning (values of sustainability and ecological preservation)

High perceived value

High quality of product

Strong distribution network in Melbourne

WEAKNESSES

Limited human resources

OPPORTUNITIES

Economic growth and expanding buying power present opportunities for sales growth

The increasing trend to consume raw, organic, and local products presents opportunities for growth.

THREATS

Strong competition in the raw honey sector

Some of the competitors are offering raw honey at a much lower price than Rooftop Honey 300 grams’ product range

Target Marketing:

The segments that have been identified by taking support from different sources (Australian Food News, 2016; Chang, Zepeda, & Griffith, 2005; Hernandez, 2012; White, 2015) and have been detailed in the table below.

Segment Name Health Believers Nature Lovers Classy Taste Traditionalist Price Conscious
Principal Benefit Sought Healthfulness Natural purity Rich taste Tradition preservation Price
Lifestyle Characteristics Active Hedonistic Conservative Value oriented
Demographics Few young adults

Middle Aged Over 65

Males

Mothers

Young adults

Middle-aged

Over 65

Both males and females

Young adults

Middle-aged

Both males and females

Middle and upper class

Middle-aged

Over 65

Males and females

Middle and upper class

Middle class

The segments that will be targeted are stated with justifications below:

  1. Health Believers: Being totally free of chemicals, additives, and preservatives, the product range is very healthy. Furthermore, it rich in nutrition and natural vitamins as it is not pasteurized or heated. These features will be highly attractive to this segment
  2. Nature Lovers: The product is 100% pure, raw, and non-processed. Being completely pure, the product will be attractive to this segment. The concept of sustainability and ecological preservation embedded in the branding of the product will also be valuable for this segment.
  3. Traditionalist: The product is extracted through the hand, which is the old-fashioned and traditional method. The branding of the company features that it is following the traditions that were set hundreds of years ago.

The target audience will majorly include the target segments. A niche marketing strategy will be employed, as the segments are not large.

3.1. Positioning Statement:

The positioning statement for RoofTop Honey has been developed as follows:

“At Rooftop Honey, ‘Pure’ and ‘Healthy’ mean a whole lot more and extend beyond good for you to the greater good for the environment. We aim to bring bees back to Melbourne, and provide you with raw, unblended, non-processed, and 100% natural honey, which is extracted from the traditional hand method.”

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4. Objectives:

The objectives of the promotional plan are mentioned in table-

Marketing Objective To increase the current market share of Melbourne Rooftop Honey product range by 5% by August 2018
Sales objectives To increase sales of Melbourne Rooftop Honey product range by 10% till August 2017

To increase the sales of Melbourne Rooftop Honey product range by 7% till August 2018

Communication objectives To increase the brand awareness of the brand by 60% till August 2018

To increase the brand knowledge of brand by 40% till August 2018

To increase the brand liking of the brand by 20% till August 2018.

To increase the repurchase of product range by 3% till August 2018

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Australian Trade and Investment Commission 2016, ‘Australian Intellectual Property laws’, viewed 9 August, 2016, <https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-business/Understanding-Australian-business-regulation/Australian-Intellectual-Property-laws>.

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  1. A small restaurant in Carlton North, Melbourne
  2. A restaurant in Repponlea, Melbourne

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